ECONOMICS
FEDERAL RESERVE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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provide services to commerical banks in US
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process gov’t checks & maintain US Treasury account
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reserach regional and international economies & distribute information
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determining whether to raise or lower the reserve rate and/or interest rate
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Detailed explanation-1: -Printing currency (Federal Reserve notes) are under the control of the American treasury, therefore printing currency are not a role of the Federal Reserve System.
Detailed explanation-2: -Key Takeaways Interest rates are influenced by the supply and demand for loans and credit. Central banks raise or lower short-term interest rates to ensure stability and liquidity in the economy. Long-term interest rates are affected by the demand for 10-and 30-year U.S. Treasury notes.
Detailed explanation-3: -The Fed has the ability to influence the federal funds rate by changing the amount of reserves available in the funds market through open-market operations-namely, the buying or selling of government securities from the banks.
Detailed explanation-4: -Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation’s banking and financial system and to protect the credit rights of consumers. Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.